Sharp fall in new dwelling gross sales after restrictions imposed

Might was one of many weakest months for housing gross sales in Israel prior to now 25 years, based on the most recent survey by the Ministry of Finance chief economist on the residential actual property market. In Might there have been 6,698 housing offers, down 16% from Might 2024. Gross sales of recent houses by contractors proceed to shrink with 1,720 houses offered in Might, down 44% from Might 2024, not together with 654 houses offered at a reduction in authorities sponsored applications.

The chief economist additionally discovered {that a} fall in builders’ purchase now pay later (20%-80%) presents continues. These declines started following the publication of the Financial institution of Israel’s restrictions on such operations, nonetheless, the falls aren’t evenly unfold in all areas of the nation. The report notes, “The Netanya area, which incorporates the Sharon cities, is especially outstanding. Thus, from a charge of roughly 66.6% of complete builders’ gross sales within the free market on this area in March, the speed fell to solely 20% in Might. A pointy decline within the prevalence of financing reductions was additionally recorded within the Hadera area and a extra reasonable decline within the Beersheva area. Alternatively, the central area stands out with a rise within the relative prevalence of financing offers in Might, persevering with the rise recorded within the earlier month. Ramat Gan stands out particularly, with financing reductions accounting for 70% of contractors’ gross sales on this metropolis in Might, in contrast with solely 27% in March.”

Rise in condo gross sales with protected room even earlier than Iran struggle

The report additionally reveals that Iran is the very best promoter of gross sales of residences with protected rooms. The information reveals from when the Iranian began launching missiles at Israel final 12 months, condo consumers elevated their purchases of residences with protected rooms.

The duty to report whether or not an condo being bought has a protected room started solely a 12 months in the past. All new residences embody a protected room, however a big proportion of older residences had been constructed earlier than the duty to incorporate a protected room, which started in 1992, and they don’t embody protected rooms, except residences that underwent the TAMA 38 course of, by which a protected room was added.

A earlier survey performed by the chief economist discovered that following the primary and second missile assaults from Iran, in Might and October 2024, the proportion of second-hand residences offered that embody a protected room jumped. After reaching 58% of all second-hand residences bought in Might (in contrast with 55% in earlier months), the proportion of residences with a protected room out of all second-hand residences bought fell to 52%, till in September and October 2024 it rose once more, reaching 56% in October. Apparently, between the 2 missile assaults, the general public had the sensation that the escalation of hostilities with Iran, and the wars in Lebanon and Gaza, had been on the decline.

After the second missile assault, and with the outbreak of the marketing campaign towards Hezbollah in September 2024, the general public realized that the struggle may last more, and grow to be extra harmful and harmful. By the top of 2024, a comparatively excessive share of residences bought with a protected room remained at about 55% of all second-hand residences bought. This can be as a result of giant worth variations between residences with and with out protected rooms, and to the good reliance of Tel Aviv residents on their proximity to dwelling and public shelters.

Within the Haifa area, alternatively, which was threatened by rocket hearth from Lebanon greater than another area, aside from the north, a rise within the charge of offers with protected rooms has been recorded because the ceasefire settlement with Lebanon was signed in November 2024.

Since January 2025, the proportion of residences with protected room out of all second-hand residences rose once more, reaching a peak of 60% in April. The chief economist speculates that this was, “Due the media discuss the potential of a struggle towards Iran, which broke out on June 13”.

Nevertheless, the development was not uniform in all areas, and within the Tel Aviv area, which incorporates solely the cities of Tel Aviv and Bat Yam, a lower was recorded because the starting of the 12 months within the charge of residences with protected rooms amongst all second-hand residences bought.

Printed by Globes, Israel enterprise information – en.globes.co.il – on July 9, 2025.

© Copyright of Globes Writer Itonut (1983) Ltd., 2025.